04.30.21
Ingevity delivered strong first quarter 2021 results based on demand improvement across its businesses, with net sales of $320.3 million, up 11.1%, and net income of $48.7 million up 7.5%. Adjusted earnings of $51.9 million were up 10% versus the prior year quarter.
Adjusted EBITDA of $105.4 million was up 14.3% versus the first quarter 2020. Adjusted EBITDA margin of 32.9% was up 90 basis points from the prior year’s first quarter.
Operating cash flow of $51.1 million was down 15.1%, while free cash flow of $34.1 million was down 16.2%.
“In the first quarter, we grew revenues across the board in all of our businesses,” said John Fortson, president and CEO. “This was driven predominantly by increased volume and supported by price increases in certain key businesses.
“We saw strong drop through on revenue,” added Fortson, “and our first quarter adjusted EBITDA margin rose slightly. We generated solid operating cash flow and free cash flow, although both were down versus the prior year period due primarily to working capital build to support the strong sales in the quarter and upcoming seasonal requirements. We are pleased that we were able to both reduce debt and repurchase shares in the quarter.
“While our performance continues to improve, we are carefully watching issues related to transportation and logistics, raw material inflation, and automotive raw materials disruptions that could become stronger headwinds throughout the rest of the year,” said Fortson. “Based on our strong first quarter and continued optimism, we feel confident raising our guidance.”
Adjusted EBITDA of $105.4 million was up 14.3% versus the first quarter 2020. Adjusted EBITDA margin of 32.9% was up 90 basis points from the prior year’s first quarter.
Operating cash flow of $51.1 million was down 15.1%, while free cash flow of $34.1 million was down 16.2%.
“In the first quarter, we grew revenues across the board in all of our businesses,” said John Fortson, president and CEO. “This was driven predominantly by increased volume and supported by price increases in certain key businesses.
“We saw strong drop through on revenue,” added Fortson, “and our first quarter adjusted EBITDA margin rose slightly. We generated solid operating cash flow and free cash flow, although both were down versus the prior year period due primarily to working capital build to support the strong sales in the quarter and upcoming seasonal requirements. We are pleased that we were able to both reduce debt and repurchase shares in the quarter.
“While our performance continues to improve, we are carefully watching issues related to transportation and logistics, raw material inflation, and automotive raw materials disruptions that could become stronger headwinds throughout the rest of the year,” said Fortson. “Based on our strong first quarter and continued optimism, we feel confident raising our guidance.”